News
Embassy REIT Announces the Completion of Embassy Splendid TechZone, Chennai Asset Acquisition
![](https://www.realtynmore.com/wp-content/uploads/2024/06/Embassy-REIT-Chennai-asset-1024x559-1.png)
![](https://www.realtynmore.com/wp-content/uploads/2024/06/Embassy-REIT-Chennai-asset-1024x559-1.png)
Bengaluru, June 3, 2024: Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed REIT, announced on Monday that it has completed the acquisition of Embassy Splendid TechZone (‘ESTZ’), a Grade-A business park in Chennai. The ₹1,185 crores acquisition was funded primarily through a debt raise of ~₹1,200 crores and internal accruals. This acquisition increases Embassy REIT’s total portfolio to 50.5 msf, positions it as one of the largest office REITs globally, and marks its entry into the new growth market of Chennai.
![](https://www.realtynmore.com/wp-content/uploads/2024/06/pr_esg_2_1-edited.jpg)
![](https://www.realtynmore.com/wp-content/uploads/2024/06/pr_esg_2_1-edited.jpg)
Aravind Maiya, Chief Executive Officer of Embassy REIT, said, “We are pleased to announce the completion of this accretive acquisition that facilitates the REIT’s entry into Chennai, one of India’s leading office markets. With this acquisition, we’re delighted to add another premium business park that perfectly complements and strengthens our high-quality office portfolio. While we evaluated funding this acquisition by issuing equity, we decided to finance it through debt and internal accruals, in the best interest of all our stakeholders. Given our diverse unitholder base and 92% public float, we will consider raising equity for defined purposes, when the markets are more conducive for us to do so.”
Transaction Highlights
- ₹1,185 crores Enterprise Value is at a 9.2% discount to the average of two independent valuation reports
- Accretive by 2.0% and 0.2% to FY2025 mid-point NOI and DPU guidance, respectively, and accretive to Mar’24 NAV by 0.2%, on a proforma basis*
- Transaction financed primarily through debt at 8.05% and internal accruals
- Stable cash flows from 95% occupancy on 1.4 msf completed buildings; leased to marquee multinational occupiers such as Wells Fargo and BNY Mellon, among others
- Embedded growth from 1.6 msf of on-campus development and 2.0 msf future development potential
- Enhances Embassy REIT’s commercial portfolio by 11% to 50.5 msf, positioning the REIT as one of the largest office REITs worldwide
-
News4 weeks ago
Solve Legacy Issues in Next 12-24 months: UP RERA Chairman Sanjay Bhoosreddy to Real Estate Developers at ‘r&m Podium’
-
News3 weeks ago
Southern Peripheral Road Emerging Epicenter of Gurugram Real Estate Market
-
News3 weeks ago
RBI Keeps Repo Rate Unchanged on Expected Lines, Move Likely to Provide Further Stability to the Real Estate Sector
-
News4 weeks ago
Modi 3.0: Expectations of the Real Estate Sector from the New Government
-
News4 weeks ago
Unveiling Sector 56: Gurugram’s Premier Real Estate Investment Destination
-
News3 weeks ago
The Luxury Rush: Faridabad’s Quest for Upscale Residential Options
-
News4 weeks ago
Birla Estates, Barmalt India in JV to Develop Over 13 acre Land Parcel for a Luxury Residential Project in Gurugram
-
News4 weeks ago
‘Tunday Kababi’ Opens at Omaxe Chowk Food Court, Dawatpur in Chandni Chowk